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Wireline Bureau announces carry-forward of E-rate funds

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Released: July 18, 2012


News Media Information 202 / 418-0500

Federal Communications Commission

Fax-On-Demand 202 / 418-2830
445 12th St., S.W.
TTY 202 / 418-2555

Washington, D.C. 20554

DA 12-1148

Released: July 18, 2012




CC Docket No. 02-6

Pursuant to section 54.709(a)(3) of the Commission’s rules,1 on April 26, 2012, the Universal
Service Administrative Company (USAC) submitted projections of demand and administrative expenses
for the federal Universal Service Fund for the third quarter of 2012.2 According to USAC’s projections,
$400 million in unused funds from funding years 2003-2010 is available to carry forward to increase
disbursements to schools and libraries via the E-rate program, more formally known as the schools and
libraries universal service program.3 In addition, while preparing projections of demand and
administrative expenses for the federal Universal Service Fund for the fourth quarter of 2012, USAC
identified another $650 million available to be carried forward, for a total of $1.050 billion in funding
available for funding year 2012.4 Section 54.507(a)(3) of the Commission’s rules states that “[a]ll funds
collected that are unused shall be carried forward into subsequent funding years for use in the [E-rate
program] in accordance with the public interest and notwithstanding the annual cap.”5
Consistent with the Commission’s rules, the Wireline Competition Bureau announces that $1.050
billion in unused funds will be carried forward to increase disbursements to schools and libraries in
funding year 2012 in excess of the annual cap.6

1 47 C.F.R. § 54.709(a)(3).
2 See Federal Universal Service Support Mechanisms Fund Size Projections for Third Quarter 2012, available at
3 Id. at 38.
4 Letter from Richard A. Belden, Chief Operating Officer, USAC, to Julie Veach. Chief, Wireline Competition
Bureau, FCC (dated July 10, 2012), available at USAC’s
Universal Service Support Mechanism Fund Size Projections for the Fourth Quarter 2012 is due to be submitted to
the Commission Aug. 2, 2012. Id.
5 47 C.F.R. § 54.507(a)(3). See also Schools and Libraries Universal Service Support Mechanism, CC Docket No.
02-6, Third Report and Order and Second Further Notice of Proposed Rulemaking, 18 FCC Rcd 26912, 26933-35,
paras. 52-57 (2003) (amending section 54.507(a) of the Commission's rules).
6 The 2012 funding year for purposes of the schools and libraries cap is July 1, 2012 to June 30, 2013. See 47
C.F.R. § 54.507(b).

For further information, please contact James Bachtell, Wireline Competition Bureau at (202)
418-7400 or TTY (202) 418-0484.
- FCC -

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